Mergers & Acquisitions: Trend Watch 2005

2005 Could Be a Boom Year

Early returns suggest most CPAs expect a pickup in mergers and acquisitions activity. That usually augurs increased demand for CPA services -- and most CPAs seem to agree.

For some background: What the New M&A Boom Means to You

Here are the preliminary results...

1. How convinced are you that mergers and acquisitions among small-sized and mid-market COMPANIES will increase in 2005?
Completely Confident: 30%
Mostly Confident: 48%
Somewhat Confident: 18%
Not Confident: 4%

2. How convinced are you that mergers and acquisitions among small-sized and mid-market CPA FIRMS will increase in 2005?
Completely Confident: 6%
Mostly Confident: 48%
Somewhat Confident: 35%
Not Confident: 11%

3. How do you think this trend could affect you PERSONALLY?
It'll be TOTALLY GREAT for me: 15%
It'll be MOSTLY GREAT: 47%
It'll have NO EFFECT on me: 35%
It could HURT SOMEWHAT: 2%
It could hurt me A LOT: 2%

4. In your opinion, what else should we know about the issue of mergers and acquisitions? Please add your comments here...
1) Expect to see the acquisition of US companies by foreign companies to increase, since the devalued dollar makes cross-border acquisitions much less expensive.
2) There just doesn?t seem to be any firms for sale in my area. Every month the buyers far outnumber the sellers and most buyers' ads go unanswered.
3) Advisors need to plan on being licensed to represent sellers, as this is becoming the norm.
4) How to finance the transactions effectively
5) I would think the "aging of the baby boomers" is having an impact as well as the Big getting rid of business.
6) Discount and premiums for smaller privately held companies. How to apply for investment value, fair market value. Also 50/50 and one shareholder is buying the other out not under a dissenting shareholder action.
7) We all have to quit sometime.
8) I believe in the long-run it both helps and hurts. It helps because as companies combine, it creates opportunities for new start-ups; it hurts because of a tendency to lessen competition.
9) Tell clients to prepare in advance!!!!!! A Client with a good plan will make out much better than one who wakes up and decides to sell right away.
10) real value to consumers--- check out UAL and Delta rumors

DEMOGRAPHICS

In what type of business do you work?
Public accounting: 60%
Business or Industry 16%
Government: 2%
Not-for-profit: 0%
Education: 2%
Other: 20%

How many people work in your office or location?
1 to 10: 45%
11 to 50: 25%
51 to 100: 13%
101 to 500: 13%
More than 500: 4%

Which best describes your position?
Chief Executive/Managing Partner: 35%
Senior Executive/Partner: 33%
Middle Management: 13%
Staff: 9%
Other: 11%

Copyright Rick Telberg/Bay Street Group LLC. All Rights Reserved.

CPAs Break Along Political Fault Lines on Tax Issues

The “Master of the (Tax) Universe” survey asked CPAs how they would set federal tax policy if they had the power to do so.

The respondents were almost equally divided on four options:
1) whether to leave recent personal tax cuts in place or restore the top two pre-2001 rates to expand and relieve the middle class;
2) whether to preserve the current Social Security system or allow personal retirement accounts;
3) whether to strengthen the existing pension system or create new retirement and savings plans; and
4) how to reform health care and its affordability.

CPAs showed stronger preferences in issues relating to taxation aimed at economic impact. Two-thirds want the global playing field leveled through reduced rates for companies that operate overseas. Sixty-five percent would rather see fiscal discipline than lower taxes and unfunded pro-growth spending.

An open-ended question drew a wide variety of tax solutions, some detailed and comprehensive.

The most common were (in order):
a) replace income tax with VAT or sales tax,
b) simplify the tax code,
c) eliminate the Alternative Minimum Tax, and
d) adopt a flat tax.

Opinions ranged from liberal (tax the rich; fund health care, oust President Bush, etc.) to conservative (reduce government power, eliminate corporate tax, privatize Social Security, balance the budget, etc.).


More: Something for Everyone in New Corporate Tax Bill

Andersen Refugee:'Thank You, Mr. Sarbanes and Mr. Oxley'

How's this for irony?

Three auditors who lost their jobs when Arthur Andersen folded are cleaning up because of the mistakes that led to Andersen's downfall.

They're auditing local San Jose, Calif., businesses that are racing to meet Sarbanes-Oxley regulations devised to prevent another fraud like Enron, according to the Mercury News.

But there's more: The founders named their firm Blueback, the nickname for the blue forms that Andersen's auditors used to detail their clients' accounting flaws. And co-founder Kim Le's last name is pronounced "Lay."' (As in Ken "Lay.")

The 32-year-old Le says she loved the eight years she put in at Andersen. But the firm collapsed while she was on maternity leave with her first child. By the time she was pregnant with her second, she knew she wanted to go back to work. So she teamed with two other Anderson refugees to start Blueback.

Blueback is now handling a number of accounting chores for Intuit, Neoforma, Plumtree Software and Good Technology.

Joked Le: ``I've got to write Senators Sarbanes and Oxley and thank them.''

CPAs to Santa:Give us Peace and Digital Stuff

The study of professionals in accounting and finance found PDAs edging out world peace at the top of the average Yuletide wish list.

The survey, admittedly, was unclear, however, whether “PDA” stood for Personal Digital Assistant or Personal Display of Affection, but in either case it appeared on 45 percent of the professionals’ plans for lap-time with Santa.

That was one percentage point ahead of requests for peace on earth.

The only more popular choice was “a better memory of my own,” at 53 percent.

Apparently all but 14 percent already had an adequate desktop computer.

But 36 percent wouldn’t mind an ultra light laptop.

Almost as many wanted “wi-fi everywhere”, and a quarter of those polled wanted a GPS device to tell them where they were and which way to go, presumably while wandering around with their new ultra light wi-fied laptops.

Only nine percent needed a new business card scanner. Only twelve percent, apparently, had maxed out their hard drives, and 15 percent could use more computer memory.

Smart phones were near the top of the list, but one smart aleck said he’d prefer a dumb phone with a good signal to a smart phone with no signal. Whether either phone will reach Santa’s workshop — we sincerely hope neither will — remains unknown.

Departing from multiple-choice suggestions, over three dozen respondents indulged in more creative Christmas cravings.

One still wanted a ’67 Shelby GT500, another a Ferrari, another a T-bird, another a plane. Two wanted health, one sanity, one time.

A Blackberry, a cell phone, a watch, a TV, golf clubs, lots of digital cameras, a lifestyle pill for everything.

Money. Music. Many happy returns after April 15.

Nobody mentioned love. Not even sex. Or maybe that was included under PDA.

TAX SEASON '05:Is the IRS Ready? Are You?

Following a new Government Accountability Office report that found the Internal Revenue Service deficient in several key operating areas, accounting and finance professionals responded to a survey that questioned the IRS's ability to do its job this year.

Only nine percent were "fully confident" that the IRS could handle this year's tax season effectively, but 69 percent were mostly or somewhat confident.

A troublesome 22 percent were pointedly "not confident."

The respondents were more confident in themselves. Eighty-one percent considered themselves "on schedule" or ready to roll for the upcoming tax season, though 14 percent were just beginning to think about it.

Five percent didn't even want to think about it.

Most saw money coming. Just over three-quarters foresaw their revenue and profits rising somewhat or significantly.

Nobody saw revenue decreasing significantly. Almost a quarter expect no change in their number of clients, and only 7 percent expected a decrease.

What will have the greatest impact on the filing season? For 68 percent, it will be clients late or unprepared. Just over half expected problems with new rules and regulations, last minute changes by the government, and technology problems.

Few said they were concerned with local competition, but 18 percent were worried that the national economy would affect their business. Just over a quarter were worried about having enough staff. Just as many feared screw-ups at the IRS.

Of 14 respondents who offered expanded comment, six complained about some aspect of the IRS: its operations, its software, its failure to deliver on promises.

Another three complained about the challenge of regulation and legislation. One worried about competition from the cheap and unskilled.

One worried about uncooperative clients. One foresaw a satisfying journey to exhaustion.
And one believed the tax season would be "uneventful."

What the New M&A Boom Means to You

A perfect storm of low rates, consolidating markets and cash-rich buyers could spark a deal-making frenzy. Are you ready?

by Rick Telberg

At Large

Hold on to your hats. American business may be on the brink of a new rush of mergers and acquisitions.

CPAs in the mergers and acquisitions space are telling me they have been seeing an upsurge in M&A momentum during 2004. And they expect the trend to gain more steam in 2005.

This could be a boon for properly positioned CPA firms of all sizes.

ARE YOU READY FOR THE M&A BOOM?
Sound Off Here.

(Get a FREE preview of the study.)

For CPAs in business and industry it may be both a blessing and a curse. The ramp-up to a deal can give a financial manager a chance to shine. In the aftermath, however, finance departments are often second only to marketing departments to face the axe. Don't worry too much though: the Sarbanes-Oxley earthquake is expected to keep the financial job market humming for at least another year.

But why the M&A resurgence now? And what does it mean?

After the lull following the burst bubble and broken hearts of the 1990s, cash-flush corporations are on the prowl, and post-bubble survivors are looking for offers, according to Michael Jacobs, president of Atlanta-based Jacobs Capital, writing in Catalyst magazine.

"There is no precedent for this amount of cash" available for deals, according to S&P equity analyst Howard Silverblatt, quoted in Forbes magazine.

The message to owners of small- and medium-sized businesses is: get ready, get set, get sold.

It's a sellers' market, but not for long.
T
he same dynamics are playing out in the CPA firm marketplace. Larger firms are gobbling up smaller firms. If you're looking to cash out, this is a great time to sell. But that's another story, or two: See "It's a Great Time to Sell!," "Buy or Sell? Firms Ponder Profits, Perils," "6 Things You Must Do Today to Thrive Tomorrow," and "What's Your Business Worth?"

In fact, middle-market transactions have almost doubled in the past year. The main drivers are increased cash flows and improved revenues in corporations that trimmed down during the recession and are already taking advantage of the recovery.

Another big driver is the low cost of capital. Though interest rates have nudged up, they're still down. And it will be a long, long time before they get this low again. Companies in search of companies have every reason to borrow now, acquire now, and pay later as the acquired companies start sucking up the cash of a recovering economy.

It's no surprise that last year 75 percent of merger deals were cash transactions. After all, why give up shares just as they're finally starting to be worth something?

Meanwhile, private equity funds have entered the market. After half a decade of poor performance, they're hungry for companies they can flip for quick profit. They're looking for companies that have survived by trimming back to maximum efficiency.

At the same time, there are more sellers than ever before. Many were waiting for the advantageous moment. Many are owned by aging baby boomers who are starting to think about retirement. And just in time, the capital gains tax is about as low as it'll ever get.

It's a sellers' market, but it won't be for long.

The deals will go to those who are ready. So get ready. Get set. Go deal.

NOW IT'S YOUR TURN: : What could a new M&A boom mean for you? Sound off here.

COMMENTS? Send your rants, raves, questions or idle thoughts to Rick Telberg here.

Finance Leads Rosy Job Outlook for '05

Six in Ten U.S. Workers Expect Salary Increase in 2005

Most U.S. workers -- especially finance professionals -- are looking to 2005 optimistically, with 61 percent expecting higher salaries, according to a national Hudson Highland survey

This includes 18 percent who expect to earn significantly more. Also, the percentage who believe their job prospects and employment situations will improve next year (44 percent) outweighs the percentage of those who do not (33 percent), according to the company, which was started by a coterie of Arthur Andersen refugees.

Workers also anticipate improved employment prospects in 2005, with 42 percent indicating they are somewhat to very likely to look for a new job in the coming year. Only 22 percent rule out looking for another job next year. To enhance employment opportunities, one in four workers (25 percent) believes that developing new skills will play the most vital role, followed closely by 23 percent of workers who feel a higher educational degree would be most helpful.

"Looking ahead to next year, workers are more positive overall than at the same juncture last year, though optimism has cooled since a summer peak," said Jeff Anderson, senior vice president, Hudson Global Resources, North America. "Still, fewer are worried about losing their jobs and hiring has rebounded. As a result, we expect workers will be more willing to take risks; gone is the 'better safe than sorry' mentality that was keeping them in their current jobs."

2004 Hudson Employment Index Year-In-Review

In fact, the Hudson Accounting & Finance Employment Index posted the most positive annual average sector Index at 114.4. compare that to the Manufacturing Index, which posted the lowest 2004 average at 99.

Details at http://www.hudson-index.com/hudson/yearend.asp.

CAREER COACH:20 Tips for Career Success in 2005

Don't let the holidays distract you from your career goals. It's a great time to shine. What are your goals for 2005?

by Rick Telberg
Career Insider

Just because you may be gearing up for the twin busy seasons of tax-preparation and year-end closes, you shouldn't necessarily put your career plans on hold.

CAREER Q&A
What Are YOUR Career Goals and New Year's Resolutions?
Sound-Off Here
(And get an exclusive Survey Preview as a Thank You for participating.)

Don't be fooled by the distractions of the holiday season. Top recruiters say it's a great time to make inroads on your job search or to establish footholds in your career climb.

This is the time of year when new networking opportunities abound and hiring managers are sizing up people and plans for the New Year.

Here are a few tips:

1. Don't let the holidays be an excuse to put off your search.
   
2. Take advantage of the fact that decision-makers may be more accessible.
   
3. Hiring managers are less likely to be traveling, so you're more likely to find them in their offices.
   
4. Holidays make great opportunities for networking. If you've worked hard on your job search and have built momentum, then the holidays are not the time to take a vacation.
   
5. Make sure you have plenty of business cards on hand to pass out to people you meet at holiday parties and networking events.
   
6. Reconnect with your network by sending out holiday greetings and extending good wishes.
   
7. Consider volunteering for a charitable cause. Non-profit organizations are always looking for extra help during the holiday season. What better way to give back to your community and make new contacts at the same time?
   
8. Follow up on job leads and referrals given by friends and acquaintances.
   
9. Busy season brings out the best (and the worst) in people. This is your opportunity to attract top-level attention for your achievements.
   
10. Take the initiative to make sure your work gets noticed.
    
11. The holidays may also be a time for self-reflection. Conduct a self-assessment and before you look for ways to promote yourself, take an honest look at your professional abilities.
    
12. Check your skill set and plan your professional education needs.
    
13. Get active in your professional and industry associations.
    
14. Share your knowledge by writing an article for a local trade publication. Pass along a few tax tips, or what you know about how Sarbanes-Oxley works.
    
15. Support the success of others by giving your colleagues and employees the tools and guidance they need to excel in their positions. Then celebrate your achievements together.
    
16. Don't skip the office holiday party. Do more than just make an appearance. Take the time to talk with people from throughout the company -- not just the co-workers you already know well.
    

In sum, the most successful CPAs seem to agree that lifelong learning and adaptation are the real keys to success.

They often mentioned four broad categories:

1. Bridging education, technology, regulations and competence
   
2. Learning to network, present, demonstrate value and prove integrity
   
3. Balancing work with life
   
4. Foreseeing opportunities, demands and crises.
   

And that rounds it out to a neat 20 top job tips for 2005. Have a Healthy and Prosperous New Year!

CAREER Q&A: What Are Your New Year's Goals and Resolutions?

TALKBACK: Send rants, raves, ideas, suggestions and requests for more information to Rick Telberg here.

Is the IRS Ready for Tax Season?

IRS modernization: One step forward, one step back.

by Rick Telberg
At Large

The Internal Revenue Service's efforts to update its systems need to be ramped up a notch or two if the agency is to remain compliant with federal law, according to a new report from the Government Accountability Office (formerly the General Accounting Office).

The GAO conducted a financial audit of the tax agency's fiscal 2004 statements. It noted that the IRS, while making significant strides in modernizing its internal processes, is deficient in several key operating areas - areas that could leave the agency prone to further inefficiencies and possibly compromise taxpayer data.

IS THE IRS READY? Cast your opinion here. (Get a FREE preview of the study.)

The IRS was commended for meeting its reporting deadline in a very timely manner while simultaneously implementing its new Integrated Financial System, a process that the agency says will eliminate many of the weaknesses spelled out in the GAO report. Despite such praise, the GAO stated that this speedy reporting was gained via "extensive compensating procedures."

Among the IRS's chief vulnerabilities or "material weaknesses" spelled out in the GAO document are:

1. Weaknesses in controls over the financial reporting process, resulting in the IRS (a) not being able to prepare reliable financial statements without extensive compensating procedures and (b) not having current and reliable ongoing information to support management decision making and to prepare cost-based performance measures;
   
   
2. Weaknesses in controls over unpaid tax assessments, resulting in the IRS being unable to properly manage unpaid assessments and leading to increased taxpayer burden;
   
   
3. Weaknesses in controls over the identification and collection of tax revenues due the federal government and over the issuance of tax refunds, resulting in lost revenue to the federal government and potentially billions of dollars in improper payments;
   
   
4. Weaknesses in information security controls, resulting in increased risk of unauthorized individuals being allowed to access, alter, or abuse proprietary IRS programs and electronic data and taxpayer information.

In addition, the GAO found what it called "reportable conditions" that cause deficiencies in certain procedures. For example, the auditors found a lack of controls over hard-copy tax receipts and taxpayer data, something that can potentially result in the tampering or loss of this vital information. The GAO also said there were deficiencies in controls over property and equipment, which prevent the agency from maintaining reliable and timely information on plant and equipment throughout the year.

Furthermore, the report concludes that the IRS's problems run even deeper.

As agency resources for enforcement have declined, its workload in this area has actually increased. This resulted in declining trends in the agency's enforcement statistics. The IRS needs to have current information on compliance from all tax groups.

According to the report: "IRS continues to lack accurate, useful, and timely financial information and sound controls with which to make fully informed decisions and to ensure ongoing accountability, which is the end goal of the CFO Act."

The agency is actually relying on data that is largely from the late 1980s. If it wishes to properly enforce the tax laws, current data is required. The GAO does acknowledge that the IRS has begun the process of gathering more recent statistical information on certain tax cohorts.

Any effort by this agency to overhaul itself is a mammoth task when one considers the massive amount of information with which it deals. It is only when the IRS fully addresses these problems that it will truly obtain the level of efficiency required of it.

And to its credit, the IRS is trying.

The tax agency anticipates that the new Integrated Financial System will be fully operational in January 2005, despite the GAO's doubts. (The release of IFS was delayed several times.)

Already, the IRS has expanded its e-filing system, making it available to corporations. It has also begun processing individual tax returns on its new Customer Account Data Engine. The new data engine will replace the agency's antiquated master file system, a time-consuming process involving magnetic tape files. However, GAO cautions that any malfunction in these systems can negatively affect the integrity of the IRS's financial records.

NOW IT'S YOUR TURN: Is the IRS ready? Are you? Cast your opinion here.

COMMENTS? Send your rants, raves, questions or idle thoughts to Rick Telberg here.

What Are You Doing for YOUR Staff This Holiday Season?

Don't miss out on the fun. Small business owners are getting this party started!

Some 95% of small business owners are planning some type of holiday celebration for their employees this year, according to a poll released this week by Battalia Winston International. That's an increase of 12% since December of 2001.

Since 9/11, financial worries have inhibited business owners and have been driving them to cut back on activities perceived as an unnecessary spending of funds, according to the study, reported by small-business researchers at Warrilow & Co. "The partying spirit is returning, even though many companies are holding back on costlier outlays, such as year-end bonuses and salary increases," Warrilow says.

By throwing a holiday party, business owners could also be killing two birds with one stone. For much of 2004, business owners told us that they were concerned about employee retention and their ability to attract skilled labor. They are rewarding their employees for their hard work but also increasing staff retention efforts by making their staff feel valued and appreciated.

Hi-Tech Tops Must-Have Wish Lists

CPAs just can't live without their PDAs, smart phones and laptops these days.

by Rick Telberg
At Large

Gadgets and gizmos -- not just gimcracks and gewgaws -- are high on the wish lists of CPAs this holiday gift-giving (and -getting) season.

Newfangled tech devices to ease mobility and ensure constant contact seem to be all the rage. To many, they are true work-savers; to some, they are lifesavers.

PDAs, smart phones and ultra-portable PCs top the lists of many professionals this year.

But which hot, new gadget can you not live without these days?

Let's check in with a few trendsetting members of the profession...

CPA HOLIDAY WISH LIST What do YOU want for Christmas? (Santa wants to know.)

Susan Bradley, Tamiyasu, Smith, Horn and Braun CPAs: "My Acer Tablet PC... I love it. Lightweight and portable and just the right size for what I need."

Michael W. Harnish, Plante Moran: "Absolutely my Apple Airport Express (works with Windows and Mac). Creates a 10 user wireless network (B and G bands) from a single Ethernet connection as well as allows wireless sharing of a USB printer. Also allows wireless streaming of music to powered speakers. A must for users on the go or small workgroups. Can be secured."

Michelle Class, Barnes, Dennig & Co. CPAs: "I have two, one a professional item and the other personal. (1) My wireless network at home. Since my husband and I both work from home a few days per week, it's wonderful that he can take his laptop and work from the dining room, while I have the desktop computer in the office. And (2) My X-BOX! Yes, it's not only for children. I'm 33 years old and enjoy playing the games in my spare time, especially HALO-2."

Greg Lockhart, Lockhart Industries: "When I travel, I love the new (coat-pocket-sized) GPS systems that can give turn-by-turn driving instructions (as well as where the nearest hotels and restaurants are)."

Paul Dunn, ReNew Group: "Skype, the best thing that ever happened to calling. It's a VoiP [voice-over-Internet-phone service] app. There are now something like 23 million people using it. We use it all the time for three-way conference calls (amazing quality) between the U.S., Australia and France. Music is such a part of my life that I have two iPods; my laptop and Wireless connectivity are a lifeline and anything that lets me use the power of the Web is top on my list."

Randy Johnston, K2 Enterprises: "Treo 600 and the portable Apple Airport. I can't imagine being a mobile worker in technology and not owning these tools."

Anne Stanton, accounting technology consultant: "I recently invested in the Corex Cardscan v700 and I use it all the time. Now I can electronically save the image of any business card and easily transfer data into my contact database and Outlook. Additionally, it fits in the palm of my hand and easily into my briefcase so it goes with me to events."

Allan Boress, marketing consultant and author of Mastering the Art of Marketing Professional Services: A Step-by-Step Best Practices Guide. "I would stop anyone who dared touch my new HP IPAQ 6145, which combines a PC and the accompanying Microsoft programs with wireless e-mail and Web site access - all attached to my belt! I was able to watch the whole election unfold by staying online with the Drudge Report. It is also a mobile phone!"

Chaim Yudkowsky, chief financial officer and business consultant: "My Dell Axim and Blackberry phone. I still like Pocket PC for many things!"

Eva Rosenberg, author of the upcoming "Small Business Taxes Made Easy:" "What do I want? A mallet. I would like to use it to smash my computers! OK, what can't I live without? My all-in-one printer - an HP 9100 color copier, printer, scanner, fax. While I haven't used the fax feature yet, the color printer, copier and scanner have helped me replace pre-printed stationery completely. I can quickly create colorful reports and print out short e-books that look sharp. Also, my Sony Read/Write CD/DVD drive. Wow. I can create CDs of my books, audio workshops and materials for my clients, regardless of file size. And of course I love the feature in most tax programs these days allowing us to create PDF files of the tax returns. We can send those off to the clients for review...or even as the final product. This has saved me about 25 percent of my paper and printing costs. (E-file has saved me about 50% on my paper and printing costs.)"

Ron Seigneur, Seigneur Gustafson Knight CPAs: "I just moved to a Treo 600 to replace my old cell phone and my Palm Pilot. Not quite a "Crackberry," but I just cannot stand those who have to check e-mail every five minutes.

Sandi Smith, CPA web advisor: "I love my new version of Camtasia Studio (by TechSmith). This software package allows me to produce customized multimedia video on the fly. I use it for training mostly, but later plan to use it for presentations and Web video. It takes five minutes to learn. It captures screen contents, my keystrokes, and my voice so I can produce a quickie training video. I can go into an accounting package, demonstrate what I want to teach, post the file to my Web site, and send an e-mail with the link to my client. Voila, instant customized training movies! Very cool!"

Geni Whitehouse, Best Software: "I have two gadgets that I am using almost daily - one is a USB hard drive pen (I have been using these as giveaways at trade shows). And the other is my digital camera - especially due to my move from Atlanta to Southern California, and selling furniture, etc. Craigslist.com has been a great tool as well."

Of course, technology isn't everything. As marketing guru Bruce Marcus reminded me, "The hottest gadget I couldn't live without is my brain, which sometimes works."

TRENDS, FORECASTS 2005

We're putting together a list of the
"TOP TRENDS AND FORECASTS FROM THE TOP PEOPLE IN THE PROFESSION."

If you're reading this, you're probably one of the "top" people.

We want to know:

1. WHAT ARE THE TOP TRENDS, ISSUES, CHALLENGES OR OPPORTUNITIES FACING THE PROFESSION?
(They may be anything you are personally aware of or passionate about -- Economic, Tax, Managerial, Political, Competitive, Global, Regulatory, Technological, Sociological, and/or etc.)

2. WHAT ARE YOUR EXPECTATIONS FOR 2005?
(What kind of year will it be for the profession? Good or Bad? What kind of surprises may erupt? What's the best that could happen? The worst?)

3. WHAT ARE YOU DOING ABOUT IT?
(Considering the Trends and Forecasts, what are you doing about it? What should the profession do?)

Participants will get a special summary of the responses, which some may find useful for their own strategic thinking for 2005.

If you'd rather talk than email, please feel free to call Rick Telberg at (914) 837-6458.

Responses are already rolling in. Check out the COMMENTS link below to see the latest. [I apologize in advance to the contributors for any typos. We're working fast and on-the-fly on this project.]

Thanks!